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What Are the Different Types of Strategic Business Systems?

Article Details
  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 21 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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Strategic business systems take a host of different business activities and put them into one single, transformational business process. Different combinations may exist for these systems, though common attributes may include business intelligence, strategic management, and corporate or business unit strategy. Owners and executives are those often responsible for driving strategic business systems, though the help of other employees may be necessary. This business system may fluctuate frequently due to the changing business environment. The purpose of a strategic system, however, is to work with these changes to maximize the company’s goals and objectives.

Business intelligence is the part of strategic business systems that use hardware and software applications to gather and disseminate information in a company. There is no real single piece of equipment or activity that defines business intelligence. It is an ongoing process companies go through in order to improve decision making and business operations. In many cases, all employees must engage in this activity as business intelligence at multiple levels help the aggregate company. Finding new paths to accessing information and using them in an organization is all part of strategic business systems.

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Strategic management involves analysis and monitoring of business activities. Owners and executive managers look into all aspects of a business and review them for efficiency and effectiveness. Strategic business systems use these latter two activities in order to ensure a company accomplishes goals and objectives at the lowest cost possible. Failure to meet the required metrics can result in alterations to current operations. Real-time changes to business systems are what make the use of strategic business systems important in a company.

The division of an organization into multiple corporate or business units allows a company to engage in better strategic business systems. For example, conducting reviews on smaller portions of a company can help encourage better improvements. Rather than attempting sweeping changes to all aspects of a company, small adjustments to different portions of the company may be more effective. Another good use of a business unit system is to ensure changes are going to have the intended and desired effects on the business as a whole. This allows the company to continue making tweaks or adjustments in order to cut costs or increase profits.

The combination of these tools and others can help create effective strategic business systems. Owners and managers should always be willing to change and alter their processes due to external factors. Failure to do so can allow a competitor to increase its advantage over the company.

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